By Ian Neubauer
The deal was inked following a contracted attempt by Tabcorp to kill the partnership through the Australian Competition and Consumer Commission (ACCC). But the ACCC ruled in favour of the deal in February, saying it would widen consumer choice and benefit the Tasmanian racing industry.
Tote Tasmania CEO, Craig Coleman, voiced similar sentiments yesterday, saying the increase would benefit the racing industry through vastly increasing returns.
“When you add this to TOTE Tasmanian’s own plans for growth, the additional funding will help to secure the future of what is already a strong and vibrant Tasmanian racing,” Coleman said.
The arrangement is anticipated to add tens of millions of dollars to TOTE Tasmania’s annual turnover. Betfair in turn will receive a percentage of net revenue for bets placed on TOTE Tasmania products by Betfair customers.
Betfair CEO, Anthony Klol, said the company had always maintained its exchange products complement those of traditional operators, adding the deal would allow it to leverage its technology and online distribution expertise to better meet customer needs.
Established in 2000, Betfair is the largest online betting company in the UK and one of the largest bet exchanges in the world. The Packer-affiliated company has a turnover in excess of $100 million.
The new service is scheduled to be fully operational by June.